Facing economic realities of muni Wi-Fi

FACING ECONOMIC REALITIES OF MUNI WI-FI
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
In the movement to blanket cities with Wi-Fi, economic realities are setting in as service providers look to tweak their business models to turn a profit. Since the municipal Wi-Fi movement started taking shape a couple of years ago, politicians, community organizers and the companies building the networks have touted Wi-Fi as a cheap solution to a myriad social and economic problems plaguing cities today. Some cities see it as a way to bridge the digital divide, while others see Wi-Fi as providing a third alternative to a broadband market dominated by the cable and phone companies. Up to this point, the financial risk has mostly fallen on the service providers that have put up the capital to build the wireless mesh networks. These companies are spending millions of dollars on their initiatives with mostly no guarantee that they will ever turn a profit. Now as operators move beyond proof-of-concept networks, they are re-evaluating their business models to ensure they can make money. This means carefully selecting the cities where they want to build networks and demanding more assurances from cities that they can get enough subscribers to make building the network worthwhile.
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